Dukascopy - Analytics

    Dukascopy

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    USD/CAD to bottom out at 1.32

    © Dukascopy Bank SA
    "Part of us feels like U.S. dollar-Canadian dollar is due a decent rally. If oil falters and the Fed remains relatively hawkish ... that might just give it enough excuse to try to squeeze U.S. dollar-Canadian dollar higher."
    - Amo Sahota, Klarity FX (based on Reuters)

    Pair's Outlook
    Although USD/CAD is currently trading in a bearish channel, the currency pair is facing a major support trend-line, which connects the 2014 and 2015 lows. Accordingly, further depreciation of the US Dollar is unlikely, and the price is expected to stay above 1.3150. Once the pair breaks out of the channel to the upside, the target will thus be the monthly pivot point and 100-day SMA circa 1.37. At the same time, beneath 1.3150 USD/CAD will be inclined to fall down to 1.2830, namely the 2015 Q4 low.

    Traders' Sentiment
    The SWFX market participants remains undecided with respect to USD/CAD—at the time of writing 55% of positions are long and 45% are short. Meanwhile, the share of buy orders soared from 31 up to 71%.

    © Dukascopy Bank SA

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